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The Effect of Job Flexibility on Female Labor Market Outcomes: Estimates from a Search and Bargaining Model

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Abstract

In this article, we develop a search model of the labor market in which jobs are characterized by work-hours flexibility. Workers value flexibility, which is costly for employers to provide. We estimate the model on a sample of women extracted from the CPS. The model parameters are empirically identified because the accepted wage distributions of flexible and non-flexible jobs are directly related to the preference for flexibility parameters. Results show that more than one-third of women place a small, positive value on flexibility. Women with a college degree value flexibility more than women with only a high school degree. Counterfactual experiments show that flexibility has a substantial impact on the wage distribution but a negligible impact on the unemployment rate. These results suggest that wage and schooling differences between males and females may be importantly related to flexibility.

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  • Luca Flabbi and Andrea Moro, 2011. "The Effect of Job Flexibility on Female Labor Market Outcomes: Estimates from a Search and Bargaining Model," Working Papers gueconwpa~11-11-04, Georgetown University, Department of Economics.
    • Handle: RePEc:geo:guwopa:gueconwpa~11-11-04
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    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling

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